The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired Baidu, Inc. (“Baidu” or the “Company”) (NASDAQ: BIDU) securities during the period from April 8, 2016 through August 13, 2020 (the “Class Period”). Investors have until October 19, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Baidu is the majority owner of iQIYI, Inc. (“iQIYI”). The complaint alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) Baidu misrepresented the financial and business condition of iQIYI; (2) iQIYI had inadequate controls; and (3) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.
On April 7, 2020, Wolfpack Research released a report detailing, among other things, how iQIYI had misled investors and failed to disclose pertinent information generally and in its Registration Statement, including: (i) iQIYI overstating its user numbers; (ii) iQIYI inflating its revenues; (iii) iQIYI inflating expenses and prices of assets to conceal its revenue inflation; and (iv) iQIYI engaging in misleading financial reporting creating the appearance of a cash generative company. On this news, Baidu’s ADS price fell $4.46 per ADS, or 4%, to close at $97.33 per ADS on April 8, 2020.
On August 13, 2020, iQIYI announced that the U.S. Securities & Exchange Commission sought “the production of certain financial and operating records dating from January 1, 2018, as well as documents related to certain acquisitions and investments that were identified in a report issued by short-seller firm Wolfpack Research in April 2020.” On this news, Baidu’s ADS price fell $7.83 per ADS, or 6%, to close at $116.74 per ADS on August 14, 2020.
If you acquired Baidu securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.